2Q2026
Went over like a lead balloon, as we used to say.
A 20% charge on a fully loaded VLCC is $30 million. Iran is widely believed to be charging less than 2%.
Trump is a buffoon.
Global shipping industry sounds the alarm over Trump’s Hormuz toll plan
... Shipping giant Hapag-Lloyd has said it is “fundamentally wrong” to charge tolls for passage through international waters, regardless of the country in charge.
“Tolls for infrastructure such as the Suez Canal or Panama Canal are different, because they reflect major infrastructure investments,” the firm said in a statement. “That is not the case in the Strait of Hormuz.” ...
UN maritime agency opposes Hormuz transit fees after Trump demands protection money
The International Maritime Organization, a United Nations agency, said Monday that it opposes transit fees in the Strait of Hormuz after President Donald Trump demanded that ships pay protection money.
“We have always been consistent on our stance on fees – IMO stands firmly against charging fees for passage through straits used for international navigation,” a spokesperson said.
“There is no legal basis through which to introduce mandatory tolls simply to transit through a strait,” the spokesperson said.
... Tolls to transit Hormuz are against international law, said James Kraska, an expert on international maritime law at the U.S. Naval War College. The world has an unimpeded right to transit Hormuz, Kraska said. ...
The tyrant is the real slave. He is mastered by a whole host of conflicting desires, none of which he is therefore able to in any way satisfy.
Trump proposes 20% toll on cargo through Strait of Hormuz; restarts Iran blockade
President Donald Trump on Monday said the U.S. will impose fees in the Strait of Hormuz “at the rate of 20% on all cargo shipped,” after declaring America’s role as the “guardian” of the major oil-shipping route. ... Trump’s post asserts that commercial vessels attempting the transit must now pay protection money to the U.S. ...
“The U.S.A. will be, from this point forward, known as ‘THE GUARDIAN OF THE HORMUZ STRAIT,’” he claimed. “But as such, and as a matter of FAIRNESS, will be reimbursed, at the rate of 20% on all cargo shipped, for any and all costs necessary to do the job of providing safety and security to this very volatile section of the World.”
“The process and formation will begin immediately,” he added. ...
U.S. won’t renew USMCA, opening door for negotiations with Canada and Mexico
... The USMCA was negotiated during Trump’s first term to replace the previous, 26-year-old trilateral trade pact known as NAFTA, which Trump frequently excoriated as a raw deal for the U.S.
When the new deal came into effect in July 2020, Trump touted it as “the fairest, most balanced, and beneficial trade agreement we have ever signed into law.” ...
Aside from the fact the president thinks this is a good thing when he normally doesn't, Why in June 2026 is the president linking to a Reuters article from January 2026 talking about the 94.6% increase in the trade deficit in November 2025, the largest increase since March 1992, is the question you should be asking yourself.
Of course the numbers have been revised in the interim, but the November 2025 percent change was still YUGE.
And yes, what does that have to do with the report of the April number today, which is the occasion of the president's post?
The answer is nothing.
Needless to say, Trump thinks trade deficits are a bad thing when he has all his marbles together, which this evening he clearly does not.
And we called Joe Biden President Applesauce Brains.
And incidentally, President Trump has a cumulative trade deficit to date of $1.154 trillion.
Not only do the Iranians control the Strait, they've turned it into a racket.
Vessels have been tracked passing between Qeshm and Larak, presumably for visual inspection, instead of through the main track of the Strait of Hormuz.
... More than 20 vessels of over 10,000 dwt have thus far made the detour, which goes between Iran’s Qeshm and Larak Islands. ...
More.
All because of one, supremely disordered soul.
‘We will remember’: Trump warns countries to help secure Strait of Hormuz as shipping stalls (Mar 16)
U.S. trade deficit totaled $901 billion in 2025, barely budging despite Trump’s tariffs
The U.S. trade deficit swelled in December, closing out a year in which the imbalance was essentially unchanged despite efforts by the Trump administration to close the wide gap.
Closing out a tumultuous year in the global marketplace, the goods and services shortfall in December totaled $70.3 billion, the Commerce Department reported Thursday. That marked an increase of $17.3 billion from November and was well above the Dow Jones consensus estimate of $55.5 billion.
For the full year, the U.S. ran a $901.5 billion deficit, down slightly from 2024 but only by 0.2%, or $2.1 billion. The total was also a bit less than the record $923.7 billion shortfall in 2022.
The report follows a year in which President Donald Trump implemented a series of aggressive tariffs aimed at leveling the global playing field. In April, Trump announced an across-the-board duty of 10% on all imports as well as so-called reciprocal tariffs aimed at specific countries that had run up surpluses against the U.S.
However, during the course of the year Trump softened many of those positions, and negotiations with major trading partners are ongoing.
In an effort to get ahead of the tariffs, companies front-loaded imports during the first three months of the year. The trend abated following the early effort, with October registering the lowest monthly deficit since 2009.
The U.S. had its largest goods deficit with the European Union, at $218.8 billion, followed by China, at $202.1 billion, and Mexico, at $196.9 billion.
Exports for 2025 totaled $3.43 trillion for all of 2025, up $199.8 billion from 2024. Imports also rose, totaling $4.33 trillion, an increase of $197.8 billion.
The increase in the deficit counters Trump’s efforts to use tariffs to reduce imbalances around the globe. When announcing so-called reciprocal tariffs in April 2025, the White House used the level of trade deficits with varying countries as a baseline for determining the duties. ...
And you don't put protective tariffs on trade when you have nothing to protect.
“We’re in charge,” he told reporters. “We need total access. We need access to the oil and to other things in their country that allow us to rebuild their country.”
More.
It's a picture of dismal failure.
The U.S. Navy has not made the Red Sea safe for free trade.
The Houthis remain a potent threat to shipping.
3Q2025 statistics compared with 3Q2023 show the number of ships transiting the Suez Canal down 49.8%.
Net tons passing through is down 65.8%.
If Reagan were alive today, he'd reject Donald Trump and his trade war against the whole world, including and especially against our friends and allies in Canada.
Reagan's full remarks from April 1987, excerpted by Doug Ford in the ad, are shown below.
The seasonally-adjusted annual rate of Trump's tariffs leaped from $96 billion in 1Q to $266 billion in 2Q.
The federal government farts through $20 billion every day, so this annualized tariff revenue goes Poof in less than two weeks, matching just 3.6% of federal outlays.
The numbskulls in the US Senate like Josh Hawley want to redistribute these tax revenues in the form of rebate checks to the taxpayers.
Wouldn't it have been easier and more efficient and more fair not to have taxed us in the first place?
Note that Donald Trump's Bureau of Economic Analysis, run by Howard Lutnick, still must call this what it is, taxes on imports lol, despite what his Treasury Secretary was still saying in June:
Bessent claims tariffs aren’t taxes.
The goods trade deficit in May was $96 billion, in June $85 billion.
The only thing that's changed is consumers are now being taxed on those trade deficits. The numbskulls of the GOP U. S. Senate are proposing rebates of these taxes to the people paying them.
It's all completely ludicrous.
It would have been easier simply not to have imposed the taxes in the first place.
If there's a way to lower the standard of living of American consumers, Mad King Ludwig is sure to find it.
